LatinNews Daily - 25 September 2024

*Peru’s President Dina Boluarte has promulgated a pension reform bill that was approved by congress in June. The reform, introduced by the right-wing Fuerza Popular (FP), creates a new pension system, Sistema Integral Previsional Peruano, that incorporates the state-run national pension office (ONP) and private pension fund administrators (AFPs). The new system will be divided into five ‘pillars’, with the goal of ensuring universal pension access – a ‘non-contributory’ pillar, administered and funded by the state; a ‘semi-contributory pillar’, in which the ONP tops up contributions to AFPs to ensure a minimum pension; a ‘contributory’ pillar, in which pensions are funded by workers’ contributions to either the ONP or AFPs; and a ‘voluntary’ pillar, in which people can choose to make further contributions to their pensions. The basic pension for retired and disabled people will be set at PEN600 (US$159) per month and will be re-evaluated every three years.